The three major US stock indices pared early losses to trade near the flatline on Thursday, with the Dow Jones rebounding from an initial drop of about 600 points. The S&P 500 and the Nasdaq, both down more than 1% earlier in the session, also recovered much of their declines.
Volatility is expected to remain elevated as traders digest the latest geopolitical developments in the Middle East. Intensifying rhetoric from President Trump has reinforced fears of a prolonged conflict with Iran and the potential for a global energy shock. He vowed more forceful action against Iran but did not provide specific plans to reopen the Strait of Hormuz. Crude oil prices continue to trade near their 2022 highs.
In sector moves, consumer discretionary stocks lagged, while energy, utilities, and real estate shares led the advance. Among notable movers, Tesla slipped about 4% after reporting weak first-quarter deliveries. Meta fell roughly 1%, Nvidia edged up 0.3%, and Netflix gained around 2%.
US equity markets will be closed on Friday in observance of the Easter holiday.
